Zimbabwe

Finance Minister Mthuli Ncube Attributes Economic Upheaval To Global Crises

Finance Minister Mthuli Ncube Attributes Economic Upheaval To Global Crises

Finance Minister Mthuli Ncube Attributes Economic Upheaval To Global Crises

Finance Minister, Professor Mthuli Ncube has attributed the current economic crisis rocking the country to global upheavals.

Zimbabwe’s economic crisis is characterised by runaway inflation, rocketing prices of goods and services and dwindling incomes.– 

Ncube’s remarks come just days after President Emmerson Mnangagwa blamed the economic crisis in the Southern African country on efforts by economic saboteurs angling to topple him.

He even introduced a cocktail of measures which he claimed were targeted at stopping his adversaries in their tracks.

However, presenting a ministerial statement on the state of the economy in the National Assembly Thursday, Ncube said the economic woes were a reflection of global economic upheavals, mainly due to the ongoing armed conflict between Russia and Ukraine. He said:

There is tension around the world currently and this has resulted in a disruption of the global economic chain, affecting its growth.

The global economic growth forecast of 4,4% for 2022 has been revised to 3,6%. Global tension has seen energy prices skyrocketing. As we know, Russia contributes 19% of the blend and crude oil. Prices of oil are now US$129 per barrel and this has resulted in increased inflation.

In Zimbabwe, the global markets have affected fuel prices where a litre of petrol now costs US$1,75. In the United States of America, there have been increases in interest rates by at least 8,6%. All these have caused an increase in prices of goods and services globally.

Ncube also claimed Zimbabwe, like many other emerging economies, was importing global inflation worsening an already dire situation. 

Among measures to curtail inflation and exchange rates, Ncube said, the multiple currency regime will continue, saying Treasury would soon start paying government expenses in foreign currency.

More: NewZimbabwe

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